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« What Tax Burden? | Main | US Declares Bankruptcy (updated) »

28 May 2009



Oh man is this really going to hurt.
Our State government is in some real trouble this time. They are going to have to make some deep and lasting cuts and also reach out and get more money somewhere (everywhere). It would be one thing if it were just a one year deal, this is going to last for several if not many years to come. And from what they say, it gets worse next year, and even worse yet the year after that.
I will be very interested to see if they decide to STOP a few things they have in the pipeline, probably not.
You thought you were mad as hell before. I think someone is running for the end of the tunnel to turn off the light bulb.

George Rebane

John, would you care to share your thoughts on the chances that Arnold will get his hands on the county's rainy day fund? You saw what HankW thought last week - see 'Matters financial and economical - 23may2009 (updated)' link on left column.


We have reserve funds, yes.
What will happen is, we will have to use them to continue certain programs for as long as it lasts.
The State will make a grab for funds that they can use while mandating all of the programs that they mandate. We will use our reserve to fill in until it runs out, because mandate means you have to do it regardless.
Now, it may carry us for a few years but when that runs out WE will be in trouble. Keep in mind, during this time there will be turmoil. Also, during this time we will find out how other (not so well off Counties) get through it. Then, it may be our turn.
Keep in mind, these our MY thoughts from what I know NOW. This thing is very fluid and I don't think anyone really knows. I would hope for the best, but I am a realist and I think we need to face it if we have any hope of getting through it.
Imagine the spending line on a steep incline and money supply going up with it, and all of a sudden the money supply line takes a sudden downturn. It creates a huge gap. We have programs that are way up there and half the money to do them. And if you want to keep doing them, where are you going to get the money. And for the next few years it gets worse until you figure out what to do.
I'm sorry, I just don't know how they are going to do it, because the economy is going to be flat lined for a while, if not worse.


For a more indepth discussion of the problem see "Message from the County Executive Officer" in our new budget about ready to be reviewed and approved next week. This message will be found in the beginning of the 2009/2010 budget document.

George Rebane

Here's the link to the county's 2009/2010 budget page from which you can see the document that John is referring to, and get other information on the budgeting process. Thanks John.

Ian Random

I remember as a kid looking at the refund from Governor Reagan, there was an enclosure saying something like this money would've been better spent on government programs. The seeds of California's destruction were laid well before today. In retrospect, I wish that prop 13 was a limit on spending at all levels, coupled with a formula for budgeting.

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